Classical economists believe that:
a. wage ,price, and interest rates are inflexible
b. wage, price, and interest rates are flexible.
c. fiscal policy should be used to stabilize the economy.
d. monetary policy should be used to stabilize the economy.
b
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Government debt is different from individual debt because
A) the government can always tax to reduce it. B) the government cannot declare bankruptcy. C) the government does not need to pay interest. D) the government can decide the interest rate.
Screening is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks
When the Fed decreases the money supply, interest rates
a. rise. b. fall. c. are unaffected. d. rise and then fall. e. fall and then rise.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this were depicting an autarky, the amount being sold domestically is:
A. 115. B. 90. C. 60. D. 160.